The March corn continues to trade just above the 40 and 50-day moving averages. Fresh news is sparse. We will have a supply and demand report next week, but there is a very good chance that there will be no changes at all, which is typical for a December report. Plan on another day of consolidation with $7.47 acting as support and $7.57 as resistance.

The March KW is making its way back to the bottom of the trading range. The wheat market isn’t getting any help from the corn and we still aren’t being overwhelmed with big export sales. However, the one bullish factor that remains is the dry weather in the HRW Belt. The crop isn’t improving and chances for moisture are slim. The new crop contracts will be very well supported for the time being.

The January soybeans made another new high for the move overnight and it still looks like the market is headed for the $15.00 level. The news remains the same. Demand is strong and there is always one eye on the weather in S. America. Soybeans and soybean oil have the best chances of seeing changes in the supply and demand report and if there are changes they will be in the form of higher demand. Buy breaks.

Live CattleTrendShort Term: DownLong Term: UpOpening Calls: Mixed

Live cattle futures closed moderately lower on Tuesday, with December taking out its’ low from the previous day and closing below the 40 day moving average. We saw some light movement of cash in western Nebraska Tuesday evening at $122.50. Asking prices in most areas remains $127+, with bids in the $122-$123 area. Mondays slaughter was reduced to 120,000, while Tuesday picked up to a hardy 129,000. We are now 6,000 ahead of last weeks’ pace, suggesting that the packers feel comfortable with their numbers or they will need additional inventory from the cash market.

Feeder cattle futures closed narrowly mixed on Tuesday, unable to hold early gains, but not following fats deep into negative territory. The cash index stabilized for the day, which may provide underlying support. Overnight corn prices are mostly flat, as they await Stat Canada numbers this morning. The continued drought in the plains is pushing more cattle away from wheat pasture and into feedlots.